3 Insurance Coverages Every Renter Should Know

Let’s protect you and your valuable personal possessions 

If you currently rent the place you live in, you are in increasingly good company. More and more individuals are responding to today’s uncertain economic climate by renting rather than owning real estate. 

The same future uncertainty is a prime reason to purchase renter’s insurance, a step that a surprisingly small number of renters choose to take. According to the Insurance Information Institute, only 37% of renters insured their rental units, while 96% of those who own homes choose to cover their property with a homeowner’s policy. The difference in coverage isn’t justified by a decrease in risk. For example, statistics from the Insurance Information Institute reveal that renters are 50% more likely to be victims of burglaries than homeowners. 

Many renters assume that their landlord’s insurance policy protects the contents of their condo or apartment. They often learn the truth only after it’s too late to save their lost belongings, none of which are protected by typical landlord policies that cover damage to the building alone.

1. Personal Property

A typical apartment contains $10,000-$30,000 in personal possessions. Renters may also have invested to paint apartment walls, add cabinets or improve lighting fixtures. For as little as $1 per day, renters can cover their personal belongings like laptops, tablets, furniture and TVs. Additionally, family heirlooms, expensive jewelry or collectibles can also be protected by an additional rider at a modest extra cost.

2. Personal Liability

Slips, falls and unforeseen accidents can lead to surprisingly large out-of-pocket costs or damaging lawsuits. A good rental policy covers the costs of emergency care and long-term liability.

3. Emergency Living Expenses

If a fire or storm makes a living space uninhabitable, many renters’ policies will pay for hotel and restaurant bills until repairs are made.

Depending on your needs, coverage can cost as little as $100 per year, which is a fraction of the price of an average homeowner’s policy. Coverage can be inexpensively configured to cover most of the major risks a renter may experience. 

Some landlords make things easier by adding a rental insurance option to their leasing packages. When calling for quotes, ask about lower rates for units with security systems, smoke detectors, deadbolt locks and other safety devices. Multipolicy discounts may also be available if you insure your car and home with the same company. 

Did you know? As a member benefit, the AVMA Trust offers personal insurance — auto, homeowner’s, and renter’s — to all AVMA members and their employees. Please share this information with your colleagues whether they are AVMA members or not.